Impact Factor: isra (India) = 317 isi (Dubai, uae) = 582 gif

participants. As a result, bankruptcy processes are 
activated in the activities of market participants. 
Today, in the post-pandemic situation, the risk of a 
global crisis continues to threaten the world economy. 
This aspect requires increasing the activity of 
measures 
against 
economic 
insolvency 
and 
bankruptcy in enterprises. 
Literature review 
Companies entering and exiting the market are 
inherent to the business life cycle, and policies should 
ensure that this can occur in a smooth and organised 
manner (Cirmizi, Klapper and Uttamchand, 2011). 
Efficient 
insolvency 
regimes 
protect 
both 
entrepreneursand creditors, striking the right balance 
between the interests of each; protecting and ensuring 
support to all parties is imperative for efficient 
bankruptcy rules and procedures (World Bank, 2017). 
Efficient regulations for bankruptcy recognise the 

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Impact Factor: 
ISRA (India) = 6.317 
ISI (Dubai, UAE) = 1.582 
GIF (Australia) = 0.564 
JIF = 1.500 
SIS (USA) = 0.912
РИНЦ (Russia) = 3.939
ESJI (KZ) = 8.771 
SJIF (Morocco) = 7.184 
ICV (Poland) 
 = 6.630 
PIF (India) 
 = 1.940 
IBI (India) 
 = 4.260 
OAJI (USA) = 0.350 
 
 
Philadelphia, USA
367 
complexity of the phenomenon and envisage the 
possibility of viable companies reorganising.
Business success or failure might be explained 
by internal or external circumstances. Internal causes 
can 
include 
managerial 
incompetence, 
overconfidence or excessive risk taking (Hayward, 
Shepherd and Griffin, 2006). External factors can be 
related to inadequate economic circumstances, 
government policies or lack of financial resources 
(Liao, Welsch and Moutray, 2008]; Cardon, 2010). 
However, regardless of the cause, effective liquidation 
and discharge procedures need to be in place to allow 
entrepreneurs to reintegrate into the market. Data 
show that entrepreneurs who go bankrupt have a 
higher success rate in their second attempt and, on 
average, their firms perform better than newcomers in 
terms of turnover and jobs created (Stam et al., 2008). 
Currently, this possibility is often impeded by the 
stigma attached to a firm’s failure.